Global Economy

Do You Believe In QE Miracles?

"This is a very artificial market," warns Allianz' Mohammed El-Erian, and while markets are expecting an ever increasing pace of central bank buying of assets, their policies are no longer working...

Forget 'Great, Again'; Make America Switzerland?

"Trump is trying to make America a bit more like Switzerland. Clinton is trying to make America less like Switzerland. Spend a day in Switzerland and tell me who has the better plan. This country is amazing."

The Economic "Recovery" Feels Weak Because The Great Recession Never Really Ended

"We are not in a recovery and were not really in a traditional recession. People think of a business cycle as a boom, followed by a recession and then there are automatic stabilizers that revive the economy, but this time, we can't revive. And the reason is that every recovery since 1945 has begun with a higher, and higher, and higher level of debt. And the debt is so high now that since 2008 we've been in what I call, debt deflation."


Globalization Is Done

The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. We are transcending into an entirely different stage of our lives, our economies, our societies. Growth is gone, it went out the window long ago only to be replaced with debt. And that’s going to take a lot of getting used to. But there’s nothing that says we couldn’t see it coming.

IMF Chief Christine Lagarde Should Resign Immediately

Does being the Managing Director of the International Monetary Fund mean never having to say sorry? As Christine Lagarde blunders on from one mishap to another with apparent insouciance, it would appear so.

As Gold Crashes, Gartman Has A Theory What Is Behind It

"Tuesday’s sell-off did look like liquidation rather than fundamentally warranted selling. This view is further supported by the fact that the open interest in the COMEX futures has fallen by more than 4% this week, suggestive strongly of forced liquidation and a throwing up of the hands… and of the stuff in one’s stomach."

Frontrunning: October 6

  • Millions flee as Southeast U.S. braces for Hurricane Matthew (Reuters)
  • Hurricane Matthew Is a $15 Billion Threat Headed to Florida (BBG)
  • Three Risks to the Global Financial System as Debt Hits Record Levels (WSJ)
  • Deutsche Bank’s $14 Billion Scare (BBG)
  • Deutsche Bank Mismarked 37 Deals Like Paschi’s, Audit Says (BBG)
  • Monte Paschi Said to Plan Debt-Swap Deadline Before Italian Poll (BBG)

The Noose Is Tightening Quickly On The Global Economy

At bottom, it is not central bank stimulus and intervention alone that drives equities and bond markets; it is the naive faith and willful ignorance of average market participants.  There is a problem with this kind of economic model, however.  Reality is never kept in check indefinitely.  Fiscal truths will be exposed, one way or another.